News Details

View all news

Veeco Reports Second Quarter 2020 Financial Results

August, 03, 2020

Second Quarter 2020 Highlights:

  • Revenues of $98.6 million, compared with $97.8 million in the same period last year
  • GAAP net loss of $8.3 million, or $0.17 loss per diluted share
  • Non-GAAP net income of $5.5 million, or $0.11 per diluted share

PLAINVIEW, N.Y., Aug. 03, 2020 (GLOBE NEWSWIRE) -- Veeco Instruments Inc. (Nasdaq: VECO) today announced financial results for its second quarter ended June 30, 2020. Results are reported in accordance with U.S. generally accepted accounting principles (“GAAP”) and are also reported adjusting for certain items (“Non-GAAP”). A reconciliation between GAAP and Non-GAAP operating results is provided at the end of this press release. 

 
  U.S. Dollars in millions, except per share data

 

             
GAAP Results   Q2 '20   Q2 '19
Revenue   $ 98.6     $ 97.8  
Net income (loss)   $  (8.3 )   $  (15.6 )
Diluted earnings (loss) per share   $  (0.17 )   $  (0.33 )

 

             
Non-GAAP Results   Q2 '20   Q2 '19
Net income (loss)   $ 5.5   $  (3.0 )
Operating income (loss)   $  8.0   $  (1.6 )
Diluted earnings (loss) per share   $  0.11   $  (0.06 )

“Despite the pandemic, we have been executing well thanks to our dedicated global team. All of our sites have been operating at or near normal capacity throughout the quarter,” commented William J. Miller, Ph.D., Chief Executive Officer. 

“We have strong customer engagements across multiple product lines and have a healthy backlog. Our Scientific and Industrial market continues to perform well driven by sales to our data storage customers,” continued Dr. Miller. “We again posted solid financials driving Non-GAAP profitability and strong cashflow from operations contributing to significant improvements in year over year profitability. Overall, we believe our transformation is delivering financial results and we are optimistic about the second half of the year.”

Guidance and Outlook

The following guidance is provided for Veeco’s third quarter 2020:

  • Revenue is expected in the range of $100 million to $120 million
  • GAAP earnings (loss) per share is expected in the range of ($0.12) to $0.04
  • Non-GAAP earnings per share are expected in the range of $0.10 to $0.26

Please refer to the tables at the end of this press release for further details.

Conference Call Information

A conference call reviewing these results has been scheduled for today, August 3, 2020 starting at 4:30pm ET. To join the call, dial 1-800-437-2398 (toll free) or 1-929-477-0577 and use passcode 6870712. Participants may also access a live webcast of the call by visiting the investor relations section of Veeco's website at ir.veeco.com. A replay of the webcast will be made available on the Veeco website that evening. We will post an accompanying slide presentation to our website prior to the beginning of the call.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our proven ion beam, laser annealing, lithography, MOCVD, and single wafer etch & clean technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

Forward-looking Statements

To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management's Discussion and Analysis sections of Veeco's Annual Report on Form 10-K for the year ended December 31, 2019 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

-financial tables attached-

Veeco Contacts:

Investors:                                                                                           
Anthony Bencivenga (516) 252-1438
abencivenga@veeco.com                                                                                 

Media:
Kevin Long (516) 714-3978
klong@veeco.com

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)
(unaudited)

                           
    Three months ended June 30,   Six months ended June 30,  
    2020     2019     2020     2019    
Net sales   $  98,637     $  97,822     $  203,139     $  197,193    
Cost of sales      56,743        61,537        114,826        126,192    
Gross profit      41,894        36,285        88,313        71,001    
Operating expenses, net:                          
Research and development      19,254        22,922        38,449        46,262    
Selling, general, and administrative      17,818        19,757        36,123        39,660    
Amortization of intangible assets      3,834        4,243        7,671        8,460    
Restructuring      472        616        1,097        2,046    
Asset impairment      281        —        281        —    
Other operating expense (income), net      (174 )      (44 )      (283 )      (80 )  
Total operating expenses, net      41,485        47,494        83,338        96,348    
Operating income (loss)      409        (11,209 )      4,975        (25,347 )  
Interest expense, net      (5,614 )      (4,211 )      (10,479 )      (8,412 )  
Loss on extinguishment of debt      (3,046 )      —        (3,046 )      —    
Income (loss) before income taxes      (8,251 )      (15,420 )      (8,550 )      (33,759 )  
Income tax expense (benefit)      51        145        319        336    
Net income (loss)   $  (8,302 )   $  (15,565 )   $  (8,869 )   $  (34,095 )  
                           
Income (loss) per common share:                          
Basic   $  (0.17 )   $  (0.33 )   $  (0.18 )   $  (0.72 )  
Diluted   $  (0.17 )   $  (0.33 )   $  (0.18 )   $  (0.72 )  
                           
Weighted average number of shares:                          
Basic      48,109        47,112        48,147        47,145    
Diluted      48,109        47,112        48,147        47,145    

 

Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets

(in thousands)

             
    June 30,   December 31,
    2020   2019
    (unaudited)      
Assets            
Current assets:            
Cash and cash equivalents   $  188,203   $  129,294
Restricted cash      647      657
Short-term investments      112,279      115,252
Accounts receivable, net      67,291      45,666
Contract assets      13,180      25,351
Inventories      136,555      133,067
Deferred cost of sales      1,676      445
Prepaid expenses and other current assets      18,544      14,966
Assets held for sale      —      11,180
Total current assets      538,375      475,878
Property, plant and equipment, net      69,170      75,711
Operating lease right-of-use assets      12,981      14,453
Intangible assets, net      53,846      61,518
Goodwill      181,943      181,943
Deferred income taxes      1,555      1,549
Other assets      7,200      7,036
Total assets   $  865,070   $  818,088
             
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $  25,973   $  21,281
Accrued expenses and other current liabilities      42,306      41,243
Customer deposits and deferred revenue      58,281      54,870
Income taxes payable      923      830
Total current liabilities      127,483      118,224
Deferred income taxes      5,844      5,648
Long-term debt      317,314      300,068
Operating lease long-term liabilities      9,004      10,300
Other liabilities      10,094      9,336
Total liabilities      469,739      443,576
             
Total stockholders’ equity      395,331      374,512
Total liabilities and stockholders’ equity   $  865,070   $  818,088

 

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data

(in thousands, except per share amounts)
(unaudited)

                           
          Non-GAAP Adjustments        
          Share-Based                
Three months ended June 30, 2020   GAAP   Compensation   Amortization   Other   Non-GAAP  
Net sales   $  98,637                 $  98,637  
Gross profit      41,894      474          19        42,387  
Gross margin      42.5   %                43.0 %
Operating expenses      41,485      (2,500 )    (3,834 )    (794 )      34,357  
Operating income (loss)      409      2,974      3,834      813   ^    8,030  
Net income (loss)      (8,302 )    2,974      3,834      7,009   ^    5,515  
                           
Income (loss) per common share:                          
Basic   $  (0.17 )               $  0.11  
Diluted      (0.17 )                  0.11  
Weighted average number of shares:                          
Basic      48,109                    48,109  
Diluted      48,109                    48,818  

^      - See table below for additional details.

Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)

     
Three months ended June 30, 2020    
Restructuring    472  
Asset impairment    281  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting    60  
Subtotal    813  
Non-cash interest expense    3,457  
Loss on extinguishment of debt    3,046  
Non-GAAP tax adjustment *    (307 )
Total Other    7,009  

*      - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share amounts)
(unaudited)

                           
          Non-GAAP Adjustments        
          Share-based              
Three months ended June 30, 2019     GAAP   Compensation   Amortization   Other   Non-GAAP  
Net sales   $  97,822                 $  97,822    
Gross profit      36,285      595          62        36,942    
Gross margin      37.1                  37.8   %
Operating expenses      47,494      (3,993 )    (4,243 )    (741 )      38,517    
Operating income (loss)      (11,209 )    4,588      4,243      803   ^    (1,575 )  
Net income (loss)      (15,565 )    4,588      4,243      3,751   ^    (2,983 )  
                           
Income (loss) per common share:                          
Basic   $  (0.33 )               $  (0.06 )  
Diluted      (0.33 )                  (0.06 )  
Weighted average number of shares:                          
Basic      47,112                    47,112    
Diluted      47,112                    47,112    

^      - See table below for additional details.

Veeco Instruments Inc. and Subsidiaries
Other Non-GAAP Adjustments
(in thousands)
(unaudited)

     
Three months ended June 30, 2019    
Restructuring    616  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting    187  
Subtotal    803  
Non-cash interest expense    3,138  
Non-GAAP tax adjustment *    (190 )
Total Other    3,751  

*      - The ‘with or without’ method is utilized to determine the income tax effect of all Non-GAAP adjustments.

These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (loss)
(in thousands)
(unaudited)

             
    Three months ended   Three months ended
    June 30, 2020   June 30, 2019
GAAP Net income (loss)   $  (8,302 )   $  (15,565 )
Share-based compensation      2,974        4,588  
Amortization      3,834        4,243  
Restructuring      472        616  
Asset impairment      281        —  
Depreciation of PP&E fair value step-up associated with the Ultratech purchase accounting      60        187  
Interest (income) expense, net      5,614        4,211  
Loss on extinguishment of debt      3,046        —  
Income tax expense (benefit)      51        145  
Non-GAAP Operating income (loss)   $  8,030     $  (1,575 )

This table includes financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

 

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Data
(in millions, except per share amounts)
(unaudited)

                                               
                    Non-GAAP Adjustments                  
Guidance for the three months ending                   Share-based                          
September 30, 2020   GAAP   Compensation   Amortization     Other     Non-GAAP  
Net sales   $  100     -   $  120                 $  100     -   $  120    
Gross profit      42     -      51      1      —      —      43     -      52    
Gross margin     42 %   -     44 %                 42 %   -     44 %  
Operating expenses      41     -      43      (2 )    (4 )    —      35     -      37    
Operating income (loss)      1     -      8      3      4      —      8     -      15    
Net income (loss)   $  (5 )   -   $  2      3      4      3   $  5     -   $  12    
                                               
Income (loss) per diluted common share   $  (0.12 )   -   $  0.04                 $ 0.10     -   $  0.26    
Weighted average number of shares      48            48                    48            48    

Veeco Instruments Inc. and Subsidiaries
Reconciliation of GAAP Net Income (loss) to Non-GAAP Operating Income (Loss)
(in millions)
(unaudited)

                 
Guidance for the three months ending September 30, 2020                
GAAP Net income (loss)   $  (5 )   -   $  2
Share-based compensation      3     -      3
Amortization      4     -      4
Interest expense, net      6     -      6
Non-GAAP Operating income (loss)   $  8     -   $  15

Note: Amounts may not calculate precisely due to rounding.

These tables include financial measures adjusted for the impact of certain items; these financial measures are therefore not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These Non-GAAP financial measures exclude items such as: share-based compensation expense; charges relating to restructuring initiatives; non-cash asset impairments; certain other non-operating gains and losses; and acquisition-related items such as transaction costs, non-cash amortization of acquired intangible assets, and certain integration costs.

These Non-GAAP financial measures may be different from Non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. By excluding these items, Non-GAAP financial measures are intended to facilitate meaningful comparisons to historical operating results, competitors’ operating results, and estimates made by securities analysts. Management is evaluated on key performance metrics including Non-GAAP Operating income (loss), which is used to determine management incentive compensation as well as to forecast future periods. These Non-GAAP financial measures may be useful to investors in allowing for greater transparency of supplemental information used by management in its financial and operational decision-making. In addition, similar Non-GAAP financial measures have historically been reported to investors; the inclusion of comparable numbers provides consistency in financial reporting. Investors are encouraged to review the reconciliation of the Non-GAAP financial measures used in this news release to their most directly comparable GAAP financial measures.

VECO_Logo_NoTag_RGB_color.jpg

Source: Veeco Instruments Inc.

Multimedia Files:

Categories: Press Releases
View all news